Whiel the outlook for Federal debt and spending continues to rise, the price of gold has actually declined by over 5% since closing above $1,000 on Friday (2/20). A look at that chart however, shows that the price of gold remains comfortably above its 50-day moving average (889) and the one-year downtrend line that was in place since last Spring. As long as the price stays above these levels, this week's sell-off is nothing more than a pullback from overbought levels.
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